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By Dickson Jere
What is the correct compensation to give to someone who was fired wrongly?
A bank manager was sacked on disciplinary issues. He then challenged his dismissal in the High Court (Industrial and Labour Relations) arguing that his dismissal was unlawful, unfair or wrongful and instigated by a fellow worker whom he has personal issues with.
After trial, he was successful and the Judge ruled in his favour. He was awarded 12 months of his salary as damages (compensation) and the Judge indicated that the enhanced award was due to economic difficulties and that it was difficult for one to find a job in banks.
Dissatisfied with the Judgement, the bank appealed to the Court of Appeal arguing – among other issues – that 12 months salary was way too much as damages. The bank argued that the former manager should be paid one month salary which is normal in such circumstances.
The bank manager also filed a cross-appeal arguing that 12 months was too little and that it should be increased to either 24 or 36 months because it was difficult to find jobs in Zambia and that he had suffered after his dismissal.
Having analyzed the evidence of the case, the three-member panel of the Court of Appeal opined thus on the damages of 12 months;
“Despite the normal measure of damages being the notice period, in special and deserving cases, the courts have departed from that principle,” the Judges said in a 89 page judgment passed last week.
“Our courts have also enhanced compensatory damages or exemplary damages based on the manner of separation and the conduct of the employer, especially where the termination or dismissal was inflicted in a traumatic fashion,” the Judges further explained.
Put simply, the Courts in Zambia can grant compensation behind what is stated in the contracts of employment (Notice) if it can be shown that the employee had suffered beyond measure as a result of losing the job.
“Therefore, the Court will only grant enhanced damages if an employee can prove that the manner of the dismissal caused distress that was contemplated,” the Judges said.
In this case, the Court took judicial notice of the fact that it was difficult to find jobs of bank manager in the current economic environment and therefore the former worker deserved the 12 months salary in compensation.
However, the Court declined to increase the compensation to 24 or 36 months saying 12 months salary was adequate in this case to mitigate the loss. Each situation will be treated according to its circumstances.
Case citation – African Banking Corporation (Zambia) Limited v Lazarous Muntete – Appeal No. 51 of 2021.
This Judgment is must read by Human Resource practitioners, law students studying Labour and Industrial Relations well as well Employment Law Lawyers.
This is not legal opinion on the subject matter. Kindly seek advice from your lawyer if you have a similar case or situation.
